Spotify files for an IPO on the New York Stock Exchange

Streaming service Spotify filed for an Initial Public Offering (IPO) on Wednesday, valued at a staggering $1 billion (£726m).

The company says that its stock trading prices and volume ‘may be more volatile’ due to the fact that it plans to list shares directly in the New York Stock Exchange, where it will be traded under the ticker ‘SPOT.’

This presumed volatility is due to the fact that the company plans to list shares directly in the stock market and not rely on underwriters to assess its stock and set a market-value price.

Spotify's IPO was listed at a whopping $1 billion (£726m) in the New York Stock Exchange

Shares have traded as high as $132.50 (£96.34) in the private markets so far, according to the company.

Spotify’s IPO will give investors the opportunity to own shares of the successful music streaming company, rather than issue new shares to raise money.

Spotify boasts 159 million monthly users and was founded in April 2006. Despite its financial success, the company has lost almost $3 billion (£2.17bn) since 2006 due to the increasing cost of licensing content. The company's business model has come under pressure in recent years due to the unpredictable royalty rates it pays its artists.

Cloud storage service Dropbox filed for an IPO last week, while Airbnb and Uber are also thought to be